Investigation: FTX Bankruptcy Lawyers Did Not Collude with the Exchange

ChainCatcher news, an independent investigation shows that the law firm Sullivan & Cromwell LLP, which oversaw the FTX bankruptcy, was unaware of the serious financial conditions and potential fraud that led to the collapse of the exchange. The investigation by former U.S. prosecutor Robert Cleary pointed out that although the firm's lawyers made false statements while representing FTX, they did not realize these statements were incorrect. Sullivan & Cromwell expressed confidence in their work prior to the FTX bankruptcy and welcomed the examiner's findings that refuted various unfounded allegations after the investigation results were published. This investigation was initiated due to widespread suspicion and condemnation from FTX creditors and customers towards Sullivan & Cromwell. When initially selected to oversee the bankruptcy proceedings, the law firm faced strong opposition from concerned creditors and former clients who believed that the firm's collaboration with FTX before the bankruptcy compromised its impartiality and objectivity.